Devolution and Growth across Britain

Emma Reynolds Excerpts

Wednesday 3rd June 2015 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

I congratulate you on your re-election today, Mr Deputy Speaker. I also congratulate the Secretary of State for Communities and Local Government on his promotion; he brings a great deal of experience and expertise to his new position. I know that his Conservative colleagues are relieved that they do not need the Liberal Democrats to form a Government this time, but I also know that the Secretary of State’s old Social Democratic party colleagues are delighted that there is still one liberal left in the Cabinet.

We have had an excellent and wide-ranging debate. Given the time constraint, I will focus my remarks on devolution in England and housing, but first I congratulate all new hon. Members, from both sides of the House, on their maiden speeches: from the Conservative Benches, the hon. Members for South Suffolk (James Cartlidge), for North East Hampshire (Mr Jayawardena), for Aldridge-Brownhills (Wendy Morton), for Gower (Byron Davies), for Cardiff North (Craig Williams), for Solihull (Julian Knight) and for St Austell and Newquay (Steve Double); and from the Scottish National party Benches, the hon. Members for Edinburgh West (Michelle Thomson) and for Aberdeen North (Kirsty Blackman).

I warmly welcome the maiden speeches of my hon. Friends on the Labour Benches. My hon. Friends the Members for Aberavon (Stephen Kinnock) and for Batley and Spen (Jo Cox) both rightly argued that our EU membership is vital for jobs, investment and economic growth. My hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) stressed her determination to secure better and more affordable housing for her constituents. I had the pleasure of visiting my hon. Friend the Member for Redcar (Anna Turley) a few weeks ago in her constituency. I am delighted at the Labour gain there. She is right to prioritise bringing more jobs and investment to her area. My hon. Friend the Member for Hove (Peter Kyle) spoke of the two world-class universities in his constituency and convinced us all that it is the best, happiest and coolest place to live in the UK.

As my hon. Friend the Member for Streatham (Mr Umunna) set out in his opening speech, the Labour party wants an ambitious and forward-looking devolution agenda that hands to the local level resources and power over areas such as transport, housing, skills and other levers to drive economic growth. We are one of the most centralised countries in western Europe and our cities, towns and counties have not had the opportunities, which many of their European counterparts have benefited from, to shape their own agenda and destiny and to drive their own economic success.

We want the Government to go further and faster on devolution. Rather than a series of one-off deals done by the Chancellor, we want a comprehensive plan for devolution to every part of England. Many county councils are worried about being left behind. The Conservative leader of Devon County Council has rightly warned against a piecemeal approach to devolution that focuses only on city regions and excludes our counties.

Will the Secretary of State explain why the so-called Cities and Local Government Devolution Bill does not actually devolve any power or resources and does not give local areas a choice on metro mayors? As my hon. Friends the Members for Sheffield South East (Mr Betts), for Newcastle upon Tyne North (Catherine McKinnell) and for Newcastle upon Tyne Central (Chi Onwurah) powerfully argued in their speeches, if the Government were committed to real devolution and localism they would surely let local communities choose for themselves, rather than putting obstacles in the way of devolution.

We know, after all, what councils can achieve when they are given the means and power. Councils across the country are working together and innovating to deliver better public services for less. To do more, local areas must have the resources that they need. Devolution must not be a smokescreen for bringing local government to its knees. The test for the new Secretary of State will be whether he can devolve power from Whitehall and deliver a fairer funding settlement for the whole of local government. His predecessor’s negotiating strategy could be summed up in three words: “more cuts please”. As a result, local government suffered deeper cuts than any other part of the public sector. The only thing that the Secretary of State’s predecessor devolved was the blame for decisions that he made in Whitehall.

The new Secretary of State must secure a change in how funds are distributed to local government and, crucially, restore the link between resources and need. In the last five years, the Government have hit with the biggest cuts the most deprived areas with the greatest needs. No part of the country has faced bigger cuts to local authority budgets than the north of England. That is why, as my hon. Friend the Member for Blackpool South (Mr Marsden) said, the Opposition remain deeply sceptical about the Government’s boasting about their role in bringing about a northern powerhouse.

The other key test for the new Secretary of State is whether he will set out serious plans and reforms to tackle the housing crisis. The scale of the challenge must not be underestimated. We are not even building half the number of homes that we need to keep up with demand in this country.

[Stephen Pound (Ealing North) (Lab)]

Does my hon. Friend agree that one of the tragedies and sadnesses of this Queen’s Speech is the ludicrous attack on housing associations, which amounts to nationalisation followed by liquidation through sequestration? Does she agree that the inevitable logic, if the Government wish to extend home ownership, is to extend this to private tenancies—and see what private landlords have to say?

[Emma Reynolds]

I am not entirely sure that I agree with everything my hon. Friend has just said, but I will say this: the real test for any of the housing policies put forward by this Government is whether they ease or deepen the housing crisis, and from what we have seen so far, they are failing that test.

Under the previous Government, we saw the lowest level of house building in peacetime since the 1920s. [Interruption.] In terms of completions, they are bang to rights: I will take our record over theirs any time. Home ownership under this Tory Government is now at its lowest level for 30 years, and a record number of young people are living with their parents into their 20s and 30s. When I was shadow Housing Minister, I lost count of the number of people who complained to me about not benefiting from empty nest syndrome because their children simply could not get on the housing ladder.

[Mr Richard Bacon (South Norfolk) (Con)]

The hon. Lady is right to say there is a housing problem. During the general election, I met people who are still living at home at the age of 34 because they cannot find anywhere. Does she agree that the real answer is to make it much easier for an ordinary person to get a piece of land and to build their own dwelling, or to commission somebody to do it for them, as is now allowed by the Self-build and Custom Housebuilding Act 2015, which she supported?

[Emma Reynolds]

We need radical plans and a big vision to solve the housing crisis, and this Government, like the one over the past five years, lack that vision.

There are 1.4 million families on council waiting lists. Let us be clear: the challenge we face in housing is one of massive under-supply, but the reforms that the current Government have set out are not equal to the scale of that challenge. They have proposed a half-baked programme to deliver starter homes at a 20% discount, without any idea of how they are going to deliver it—so much so that the then chairman of the Conservative party, the right hon. Member for Welwyn Hatfield (Grant Shapps), could not quite explain it.

There is also the right to buy proposal, which seems to be unravelling before a draft Bill has even been printed. Opposition Members want as many people as possible to fulfil their aspiration to buy a home of their own, but housing experts and even the former head of the civil service and permanent secretary from the Secretary of State’s own department, Lord Kerslake, have said that the proposals are unworkable and that the numbers do not stack up. Yesterday, a Member from the Secretary of State’s own party said so, and even the Mayor of London, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), has expressed serious concerns about the proposals. There are many unanswered questions about how the proposal will be paid for, and about how the Government will deliver the one-for-one replacements that they committed themselves to in the last Parliament. As I have said, the test we will set this Government is whether their housing policies tackle the housing crisis, rather than deepen it.

We call on the Government to bring forward an ambitious and comprehensive plan for devolution to all parts of the country—to our cities, towns and counties—and we will hold the new Secretary of State’s feet to the fire to deliver a better and fairer deal for local government and real plans to tackle, not deepen, the housing crisis. For those reasons, I urge all hon. Members to vote for our amendment.